She said with "more money in the coffers", the Government could announce larger personal tax cuts, increased public spending and the federal budget achieving surplus sooner than 2020-21, particularly with the next federal election drawing nearer.

JP Morgan senior economist Ben Jarman expressed similar sentiments.

"There's definitely more scope for bringing forward perhaps the tax cuts that the Government had floated earlier on," he said.

The $144 billion personal tax cuts could be introduced in seven years, then-prime minister Malcolm Turnbull said in June.

"I would love to think that we would be able to bring some of these tax cuts forward if the budget enables it," he said.

Where will consumers feel the pinch?

In the immediate term, Australians travelling overseas (particularly to the United States) may need to tighten their wallets.

"A lower Australian dollar means more people want to come to Australia for holidays since it's cheaper … but fewer Aussies want to travel overseas," Ms Emmett said.

Meanwhile, Australia's Reserve Bank has kept short-term interest rates on hold at 1.5 per cent for more than two years, as sluggish wage growth and a cooling housing market continues to affect the local economy.

The RBA is widely expected to remain stuck at record low rates for the foreseeable future.

The gap between US and Australian long-term interest rates has also continued to widen — with the benchmark 10-year US treasury yield at 3.23 per cent, and Australia's 10-year government bond yield at 2.76 per cent.

Further falls ahead

However, there is scope for the Australian dollar to continue weakening.

The local currency will hover around 70 US cents, but could fall further if US inflation and interest rates lift by a faster than expected rate, on ANZ's projections.

But JP Morgan has taken a slightly more pessimistic view, with Mr Jarman expecting a fall to 68 US cents.

"The Australian dollar is caught between very supportive factors — high domestic export prices, especially coal and iron ore — but dragged down a little bit from [interest] rate spreads, which are quite negative," he said.

"And it's getting more so with the RBA on hold for an extended period, and the Fed likely to hike several more times."